The acronym IaaS stands for Infrastructure as a Service, a cloud computing model that provides virtualized computing resources over the internet. With IaaS, users can rent servers, storage, and networking capabilities on a pay-as-you-go basis, allowing them to scale resources according to demand without investing in physical hardware. IaaS is suitable for businesses looking to streamline their IT infrastructure, offering flexibility and control while minimizing upfront costs associated with purchasing and maintaining hardware.